Ford (F) expects an operating margin of ~10% for its North American ops this year, down slightly...


Ford (F) expects an operating margin of ~10% for its North American ops this year, down slightly from 2012's 10.4%, Americas chief Joe Hinrichs discloses at a BofA conference. Ford's mid-decade outlook forecasts an 8%-10% margin for North America, and 8%-9% for its global ops. 2013 U.S. industry auto sales (on a SAAR basis) are pegged at 15M-16M, up from 14.8M. Ford estimates its Feb. '13 U.S. share was 16.1%, up 80 bps Y/Y. South America is seen having a roughly breakeven op. margin for 2013, below 2012's 2.1%. (slides)

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  • DJS1843
    , contributor
    Comments (32) | Send Message
     
    Why has Ford's stock remained dormant?????
    27 Mar 2013, 05:49 PM Reply Like
  • Tdot
    , contributor
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    Umm ... because "Ford expects an operating margin of ~10% for its North American ops this year, down slightly from 2012's 10.4% ..."?

     

    Ford's stock should be roughly proportional to earnings, with an eye towards the growth potential and trends and projections. Stagnation and declines are not indicative of growth potential and higher share prices.

     

    A fair P/E for Ford might be on the order of 10. With a projected E (earnings) of $1.40 per share for 2013 (down from earlier estimates of $1.50), and around $1.70 for 2014 (down from $1.80), then a fair price target is around $14 for this year, stretching maybe to $15 if Ford beats estimates; and $17 next year.

     

    If the Price races too far ahead of that pace, then expect a selloff.
    27 Mar 2013, 06:08 PM Reply Like
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